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How Blockchain Projects Can Survive And Thrive Despite Crypto Winter!

The current bleak market conditions have prompted many to forget that the crypto market, similar to the stock market, goes through both bull and bear cycles. Discerning investors, however, are of the belief that it is only a matter of time before the market turns bullish again.

Meanwhile, the industry is still rife with blockchain projects that are brimming with potential — how then, could such promising projects stay resilient and even thrive despite challenging market conditions?

Let us first examine the differences between the current bear market and the last one, which occurred in 2019.

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🔹Firstly, with the increase in the number of industry players and global attention paid to cryptocurrencies, the public’s perception and acceptance of the blockchain have changed for the better. For example, as of July 2022, more than 83 million people had created unique Bitcoin wallets on Blockchain.com, which are required to purchase Bitcoin. That represents growth of roughly 9 million users compared with a year earlier, and about 43 million more than in 2019 (a 93% increase), according to the statistics website Exploding Topics.

🔹Secondly, while blockchain technology used to belong solely in the realms of enthusiasts, the blockchain industry is now attracting hordes of young talent. Furthermore, many traditional industries have also started deploying blockchain-related applications to increase business efficiency, contributing to its acceptance among the masses. The most prominent example is of Facebook changing its name to Meta.

🔹Thirdly, the last bear market saw competition in the blockchain industry focused solely among public chains, despite relatively few applications available back then. The industry has since evolved and now encompasses several blockchain-related technologies such as DeFi, NFT and GameFi, presenting more possibilities than ever for the industry to flourish.

It is only a matter of time before the current bearish cycle comes to an end. Meanwhile, industry participants have been pondering how best to emerge victorious given the current bleak economic climate.

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🔹Here are some points to consider:

Budding projects need to first consider cost control. Cutting expenses and maintaining a lean operating budget will enable firms to tide through this winter. There is no better time than now for firms to take a deep look into their existing operations and product portfolio, while sounding out interest from prospective business partners, in anticipation of the upcoming bull market.

Middle to large blockchain projects that have achieved success during the bull market will need to adjust their strategies to be aligned with external conditions. Blockchain projects used to operating on larger scales might need to consider more conservative business plans and avoid setting ambitious profit goals or over-leveraging, in order to avoid a liquidity crisis.

The harsh winter is a clear signal for leading blockchain industry players to play their part in maintaining and supporting the industry’s path forward.

🐻 7 Ways To Earn In A Bear Market 🐻

During a recent interview, Lily Zhang, CFO of Huobi Global, one of the world’s leading cryptocurrency exchanges, reiterated that ensuring the security of users’ assets and providing support for projects that have great potential but are facing temporary difficulties are key responsibilities for top industrial players.

Citing how Huobi Global dealt with the Terra-Luna collapse, Zhang said, “Huobi Global conducted a timely and appropriate assessment of the situation, with users’ interests at the forefront.

“When Luna started its death spiral, we stopped accepting deposits for the token, which ensured that its price on Huobi Global was the highest among all platforms during that period. This move provided protection for Luna holders on our platform and gave them sufficient time to adjust their trading strategies. Upon confirmation that Luna would no longer be issued, we let holders of Luna and UST of the risks in advance, so more informed decisions could be made on their part.”

The quality of a token project has a direct impact on users’ investment outcomes. Therefore, meticulous screening and review of the project background and qualifications have become mandatory for exchanges that prioritize user security. In addition, a regular audit of user assets is another best practice that exchanges have adopted to ensure asset safety.

Huobi Global’s token listing team has a strict token screening process and implements asset audits on a regular basis. According to Zhang, the company completed an audit of potential risks to user assets in June, which confirmed that all user assets were safe.

The blockchain industry is undergoing tremendous challenges, and this trying period will see the resilient players emerge victorious amidst the chaos and uncertainty. Forget not that the longer-term future remains promising, and those who wait out the current winter will enjoy the upcoming warmth of spring — the season of new beginnings.

🔹Thanks for reading and to stay updated on crypto follow us on Twitter 🤝Telegram🤝 Discord for more information and giveaways!

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